Aussie fashion powerhouse Zimmermann announces a shock closure - leaving customers worried

Beloved Australian fashion label Zimmermann has shocked fans with the closure of a popular store.

The brand's previous store down Mercer Street in Soho, New York, has been taken over by London clothing brand Odd Muse, which launched its first American pop-up store on November 10.

Fans grew worrisome over the future of the popular Aussie label in America and questioned if it was a sign of dire straits.

Shoppers jumped to conclusions after watching the installation of the new Odd Muse sign cover an old Zimmermann sign on a TikTok livestream.

Zimmermann opened its first flagship store at 87 Mercer Street in 2012 but 12 months later relocated up the road to a larger location at 55 Mercer Street.

The brand moved for a third time earlier this year and relocated around the corner into an 1800s building at 39 Greene Street, showing no signs of financial strain.

'39 Greene Street is a very iconic building, it's very quintessential New York,' co-founder and COO Simone Zimmermann told Vogue.

'It has dimensions and volumes of space that really allow us to continue to have a store experience for our clients that is bespoke to a place.'

Daily Mail Australia has contacted Zimmermann for a comment.

Aussie customers aren't to blame for thinking the worst had occurred as a number of other high-end brands have also been struggling.

In September Australian fashion label Sass & Bide announced the closure of close 10 stores across the country from October 6.

The brand has been at the forefront of women's designer fashion for 25 years.

The stores impacted include Bondi, Paddington, Miranda and Chadstone in New South Wales , Rundle Street in South Australia , Doncaster and Emporium in Victoria, Karrinyup in Western Australia and Newmarket in New Zealand .

Only a selected few will remain open - including one in Victoria, one in WA and two in Queensland .

Celebrity-loved fashion brand Dion Lee also closed the doors to its Paddington store in Sydney after collapsing into liquidation owing $35million.

The high-end line was a favourite of global superstars, including Taylor Swift and Dua Lipa , and entered voluntary administration in May after a partnership deal collapsed.

On August 29 creditors opted to put the business into liquidation after receiving no 'acceptable' offers to buy out the brand.

The announcement came as a shock to fans and the second store in Sydney's Strand Arcade is also expected to shut this month.

Antony Resnick, a liquidator from insolvency firm dVT Group, was appointed as the administrator for the brand.

'The second creditors meeting heard that while there had been interest from potential buyers of the brand no acceptable offer was as yet forthcoming,' the liquidators said in a statement to news.com.au.

Major clothing label Cue Clothing Co, reportedly ended their partnership agreement with Dion Lee and also cancelled their investment in the business according to The Australian.

Cue Clothing Co first became a partner with Dion Lee more than a decade ago and the company was also a shareholder in the business.